Answer:
$13.1
Explanation:
The value of the stock at the end of the 4 years from now shall be determined through following mentioned formula:
Value of stock at year 4=D5/R-G
R=required rate of return=12%
G=growth rate in dividends=7%
D5=dividend at the end of year 5, which shall be calculated as follows:
D1=$0.50
D2=$0.50*1.07=$0.535
D3=$0.535*1.07=$0.572
D4=$0.572*1.07=$0.612
D5=$0.612*1.07=$0.655
Based on the above calculations, the value of stock at the end of year 4 is given as follows:
Value of stock at year 4=$0.655/12%-7%
=$13.1
Answer:
$3.7557
Explanation:
The computation of one share of this stock worth is shown below:-
Years Dividend Present value Present value
factor at 16%
0 $2.50
1 $2.00 0.8621 $1.7241
2 $1.50 0.7432 $ 1.1147
3 $1.00 0.6407 $0.6407
4 $0.50 0.5523 $0.2761
Total $3.7557
Present value factor at 16% = (1 ÷ (1 + discount rate))^years
Answer:
D. All of these are true.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, it can be sold through stocks or shares, as a public entity.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
A bylaw can be defined as rules or laws that are binding on an organization and its employees, as a result generally governs the internal affairs of the organization.